Oil rises as Middle East supply concerns persist amid shipping attacks
USO•Oil prices rose as attacks on shipping in the Gulf and Strait of Hormuz heightened supply concerns. Brent gained 1.33% to $101.53 a barrel and U.S. WTI rose 1.26% to $89.39.
1. Prices rise on supply fears
Brent crude futures rose $1.33, or 1.33%, to $101.53 a barrel, while U.S. West Texas Intermediate gained $1.11, or 1.26%, to $89.39. Prices had settled lower on Wednesday after the International Energy Agency agreed to accelerate the release of oil stocks and prioritize diesel supplies.
2. Shipping attacks increase
Threats to oil shipping in the Gulf and Strait of Hormuz increased in October as the US-Israeli conflict with Iran entered its eighth month. The strait carried shipments equal to about 20% of global oil and fuel before the war, and attacks on tankers there hit their highest weekly level since the war began last week. A tanker north of Qatar was struck by multiple projectiles, causing casualties, the United Kingdom Maritime Trade Operations agency said.
3. US inventories decline
US crude inventories fell by 3.2 million barrels to 424.1 million in the week ended October 2, exceeding analysts’ expected 1.7-million-barrel decline. Distillate inventories, including diesel and jet fuel, dropped by 42,000 barrels to 105.14 million, below levels reported for this time of year in the past five years. ANZ strategist Daniel Hynes said the IEA release would likely draw on barrels in its original 400-million-barrel plan, rather than represent an additional draw on strategic inventories.
